Skip to main content

tv   Mad Money  CNBC  August 19, 2013 6:00pm-7:01pm EDT

6:00 pm
listening is in stock. >> what's with you quizzing people? the show is over. >> bank of new york melon is night at 5:00 p.m. eastern time and street signs 2:00 p.m. eastern every day. my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere. and i promise to help you find it. "mad money" starts now. . hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. just trying to save you a little money. my job, not just to entertain or coach, but to teach. so call me at 1-800-743-cnbc. happy birthday, google! today we celebrate google's ipo nine years ago, and it is, indeed, an event worth celebrating indeed because the
6:01 pm
stock has rallied 900% since it first began trading. ♪ hallelujah >> it's been a remarkable move. and completed with an increase where the dow dropped, s&p declined .59%, nasdaq climbed .38%, four straight days down for the dow. i have to admit i've liked google at $85 a share and used a $200 price target that first day, something that raised eyebrows pretty much everywhere as way too wide eyed. but i've always been the big believer in buying what you know. and use, of course, after doing the homework. and this stock seemed ridiculously cheap to me from the get go. one of the reasons why stems from the way google did the ipo in a confusing public option, not the typical road show managed by big wall street. and it depressed the price that the company would've otherwised received. the second reason i like google, of course, the best innovation that the web has brought us. save perhaps amazon and netflix.
6:02 pm
probably on it two dozen times today and that's par for the course. plus, i have to tell you that while the stock has been acting funky of late, although today was a rare exception, the stock rallied nicely, google has never truly recovered from what was thought to be a disappointing quarter. this last quarter wasn't that terrible, it's just that wall street analysts have been using this $1,000 price target thing going right into the results. and that was too much for this $900 and change stock to handle given the rapid transition from desk top to mobile that everyone figured google has mastered but did elude them this quarter. i think next quarter we're going to like it. i think the stock's a buy. now, here's what's astonishing, as terrific and fabulous as google's 900% gain has been, do you know what's been dwarfed by the performance of nine other stocks in the s&p 500? nine other stocks! and on a day when once again, many people are fretting over the low interest rates, the end of higher earnings comparisons. it's worth taking a moment to talk about the nine names that better google.
6:03 pm
particularly in retrospect. you might be close watchers of the show. the best stock in the s&p 500 since google became public, you probably may have guessed it. no, not apple. priceline. which is worth 4,598%. to me it makes a ton of sense, it's the global working person's favorite travel site and produced global bargains for years and years and years. it's a remarkable company, i know we've repeatedly sung the praises because it's changed the way travel has been done forever. people love a bargain. i think wall street's doubted the stock all the way up because there's a big snob factor. the analysts don't use it. they should, the stock's not done going higher. the second best up 2,492%, monster beverage, mnst, holy cow. this is a generational play, people.
6:04 pm
you don't know of it if you grew up staying awake on hefty amounts of maxwell house as i did, but monsters is one of the two dominant plays, the other being red bull and the de facto way for those who want to go the extra mile to do so whether they should or not. in a year where healthy eating has been a sentence as we'll find out later in the cookout portion of the show, this one's been a banshee! despite articles, hey, what can you do? people still smoke for heaven sake, they'll pound energy drinks. the convenience store sales, they are off the charts! next up is apple and this stock made a comeback of late because of purchases by noted investor carl icahn has surged thanks to innovation. first the best desk top, still is, then the ipod, the iphone, finally the tablet. we know that the principal increase occurred when steve jobs was alive and many people think it's peaked. though our chartnado chartist who appeared on chart week last week begs to differ.
6:05 pm
and so far she's been very right. fourth is regeneron, which i hope you've caught every penny of this stock because the run dates back to when the ceo came on this show. he was our first guest, 2005, and talked about his revolutionary new drug for m macular degeneration for the eye. and anticholesterol medicine. i believe it could be a billion dollar blockbuster. and it's got proprietary heart and autoimmune medications. the move's been augmented by takeover talk. and i believe this stock can't stay at these levels. even as i do agree that as a healthy pipeline of innovative medicines and we've liked it. netflix has rallied 1,533% despite doubters the whole way
6:06 pm
and still gets nowhere near the respect it deserves. even as there are about 30 million people paying fees, it's been a ground breaker in the way we consume entertainment, it's also got a house of cards and i don't know that orange is the new black. that's a tough one, women like it. about 200 points ago, i suggested that apple buy them. they didn't bite. but carl icahn did and the legend continues. i think netflix is still a buy, but the stocks are expensive and like amazon and tesla no longer has priced to earnings multiple moorings. next up, this company's stock isrg is up 1,445% since it started trading. it's down hideously this year over questions about how doctors are using the company's product. i don't have much comment other than you should read my colleague herb greenberg's stuff on i never go against a greenberg red flag and today -- in this
6:07 pm
one is no different. is the eighth best performer and we know from the ceo's multiple appearances on the show that the 1,341% gain the fact that crm has pioneered using social, mobile and cloud technologies to become the premier software company of our era at a time when all areas are innovating. the last stock that's beaten google's 900% gain is capital oil and gas which has rallied. it's been the most prolific producer from the largely pennsylvania-dominated field and a low cost producer of the fuel. it's been able to beat estimates routinely as natural gas has gone down over the years. consider cabot an innovator, more success than any other resources company during the period since google came public. so here's the bottom line, yes, indeed, we have to wish google a
6:08 pm
happy ipo birthday and thank it for our many, many happy returns. but the real take away is that there are actually stocks that have beaten this remarkable company's 900% gain in that period. in each case, these were accessible gains for many regular people to have and amazingly, many of them, including google may have much further to go! morgan in california. morgan? >> caller: mr. cramer, you are a gentleman and a scholar. >> that's always the highest form of praise. go ahead. >> caller: my question is about a local company, it's a favorite of mine. so i might have some bias here. it's pandora. i have some calls and i'm not hedged. i'm coming in to earnings, they're doing well right now. i need some advice. >> you know, i understand. i was listening to it this week with my buddy michael hale and i was saying this pandora system. i don't know, i think the shorts have misjudged it. i think it has staying power. i think it can still go higher.
6:09 pm
wow. how about josh from wisconsin, please, josh? >> caller: hey, big trucker boo-yah to ya. >> how about a nice road trucker jesse boo-yah to ya. >> caller: very cool. i've been holding on to apache for quite a while and i like the stock for quite a few reasons. but every time things keyed up over there in egypt and it's bad, i mean, i'm really sorry about those people over there, but the stock gets massacred like today. >> right. >> caller: should i hold it or sell it? >> i don't know, i feel exactly like you do. should i talk about apache? the human life lost there is amazing. apache is an inexpensive stock that seems to want to get cheaper because people just can't get it in their heads that maybe these egyptian fields will be protected. it would be at $100 if that field was in any other country other than egypt. frank? >> caller: how you doing, jim? >> how about you, frank? >> caller: good. i recently purchased shares from broadcom after reading good
6:10 pm
reports. it's been steadily dropping and it's past the year low today. i would like to buy some more to average out my lows. >> i don't know, stephanie link, we just are so glad we sold the stock higher. i've got to tell you, i agree with you, it has gotten cheap. but cheap gets cheaper in this particular market. goog, happy ipo birthday. 900% in nine years, hot stuff, but there are other stocks, nine other stocks with even better gains! the good news, they got more to run! ♪ hallelujah >> google, "mad money" will be right back. coming up -- on fire? cookouts with cramer is heating things up all week. closing out the summer by finding this market's hottest themes. and you've got an all access pass to this picnic. tonight, these health conscious brands are bringing organic to the grill. can they get things cooking in your portfolio? and later, take a dose, looking for prescription for
6:11 pm
profits? how about a company that's worked to develop each of the top 50 selling drugs worldwide. cramer's putting newly minted ipo under the microscope for further examination. don't miss his exclusive with the ceo. all coming up on "mad money." don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer #madtweets. send jim an e-mail to or give us a call at 1-800-743-cnbc. miss something? head to every day we're working to be an even better company -
6:12 pm
and to keep our commitments. and we've made a big commitment to america. bp supports nearly 250,000 jobs here. through all of our energy operations, we invest more in the u.s. than any other place in the world. in fact, we've invested over $55 billion here in the last five years - making bp america's largest energy investor. our commitment has never been stronger.
6:13 pm
every day we're working to and to keep our commitments. and we've made a big commitment to america. bp supports nearly 250,000 jobs here. through all of our energy operations, we invest more in the u.s. than any other place in the world. in fact, we've invested over $55 billion here in the last five years - making bp america's largest energy investor. our commitment has never been stronger.
6:14 pm
things are heating up on "mad money." all week, i'm looking at this market's hottest trends. it's in our cookout series. and tonight we're going 100% organic. regular viewers know i've been a huge backer of the organic food theme for years now. organic food is a $63 billion
6:15 pm
industry worldwide growing at 9.5% clip here in the united states alone. incredible considering the food plays tend to be slow and steady growers 2%, 3%, not ultra fast ones, but the real source of the strength has less to do with the numbers and more to do with an intangible, the culture, which is why i've fired up the grill for all you folks at home in order to get everybody on the organic bandwagon. nearly 36% of american adults over the age of 20 are overweight or downright obese. i mean, that's bad. we're in a desperate fight against fat. and everybody knows it, especially the younger generation. that's one of the big reasons why increasingly, people care more and more about what they put in their bodies. i know this from my own young adult daughters including my vegetarian daughter who forced me last night to eat vegetable dumplings. and these days, eating healthy isn't just about looking at the calorie count on the back of the packaging or eating fewer servings or going all atkins or cutting out carbs.
6:16 pm
not just about ingredients in your food. for the truly food conscious today and this has become a large cohort, it's about the providence of the ingredients. the way in which the fruits and veggies and grains were grown, the way the cows and chickens and pigs were raised. is your meat shot full of hormones and unnecessary antibiotics? how about gmos, were you coffee beans picked personally and paid for using best fair trades practices available? and so on? and that's a lot to keep track of. and it's very difficult to go to a regular supermarket and put every single product you're thinking about under the microscope. let's see here, what do we got? oh, look at this. oh, wait a second. that was made -- okay. anyway, doing -- doing that for your entire diet is a full-time job. give me a sonar scan of this orange, which brings me to the first group of stocks i want to talk about. the organic healthy eating
6:17 pm
grocers. we're going to buy our ingredients in the new world. many marvel at a place like whole foods can get away charging with such so-called outrageously high prices for its food hence the old saying give a man a fish, he eats for a day -- but for dedicated and natural food crowd and people looking for good-tasting food, that's also good for you, whole foods has something incredibly valuable. for everybody and it's called trust. you go to whole foods and you know everything in there has the company's good housekeeping seal of approval and these guys make it very difficult to get your food in their stores unless it meets their exacting standards. and let's be sure of something else, by the way. when we actually measure the prices whole foods charges, they actually aren't all that much different or higher from the other guys on a whole variety of products. they actually judge it by a basket and the basket's not out of line at all. so you got the organic crowd,
6:18 pm
the other cohort, wealthier people willing to pay up for food which is a cut above what you can find in terms of quality. and given the tale of two cities nature of our economy lately, those at the top are doing just fine, the kind of consumer who shops at a place like whole foods, i say, he's far from strapped. that's why i want to go through the organic grocery names and after the break, we'll grill up the actual organics and natural food makers. let's start with whole foods. it's the biggest and best run. even though the organic cohort has been on fire, whole foods is only up about 16% for 2013, roughly in line with the s&p 500 and recently the stock's been clobbered falling to around $53. the reason, whole foods reported in the last day of july and the company dlir delivered a quarter considered underwelming and the next year was only in line. oh, the problem with in line.
6:19 pm
it's a momentum stock, people want to see the company beat the numbers and then raise its forecast. it's got to beat and raise! the other issue is that the company said the same-store sales were tracking. so far in the current quarter, most people would kill for that. you have to understand whole foods is up against tough comparisons. last year in the fourth quarter, it saw 9.7% increase in same-store sales and these fabulous numbers are what the company's now being graded against. little unfair when you think about it. in my opinion, this weakness in the stock represents a buying opportunity. whole foods has the ability to expand to 1,000 locations, triple the store count. the company plans to add 33 to 38 new stores next year, 8% or 9% growth. and the out years further down the road, whole foods could add as many as 50 new locations per year. meanwhile, the company's old stores, ones open for more than 11 years, they're still performing quite well, 5.8%
6:20 pm
same-store sales growth. that is fantastic. that is great, great growth. can you tell which one is from whole foods? i don't think either are. anyway, right now whole foods is selling for 30 times next year's earnings with a long-term growth rate of 19%. that's not too pricey, only 28 times earnings when you back out the $6 per net cash on the balance sheet money used for buybacks, dividend, you can get a high multiple. always remember the best of breed stock never comes cheaply and whole foods is no different. what about the fresh food market tfm for you home gamers. 130 locations, mostly in the southeast, growing to 500 stores. tfm trades at 28 times earnings with a 20% long-term growth rate. but i'm somewhat concerned about the company's regional and national potential. it's going to be tough for a fresh market break into the northeast. the company reports at the end of august, we'll revisit it
6:21 pm
then. if the results are spectacular, hmm, goes higher. right now, i'm still saying go with whole foods. how about the recent ipo and the organic grocery space? these have been on fire. are they worth owning? natural grocers, the longest name of any company i've heard of became public more than a year ago up 119% since the ipo. whoa! and while the 68 store chain is expanding rapidly, i say ca-ching ca-ching. then there's fareway, came public in april, it's now come down 6 points. it sells an exorbitant 91 times next year's numbers. if the market keeps getting hit, then high multiple stocks like this one will get killed. this stock goes lower! that said, i misjudged the strength of the stock since it became public and you can question my reservations.
6:22 pm
i cared about relevant valuation while the buyers seemed to care about how great it is, and it is, to shop there. people getting married in aisles and stuff. and then we have the most recent ipo in the group sprouts farmers market became public a little less than three weeks ago and jumped 122%. this area's roaring in the first day of trading. this deal, had a double. as long as you recognize this is one expensive stock. here's the bottom line. when it comes to the organic grocery aisle, you want to stick with the best of breed which is whole foods. and please, i'm begging you, ring the register on at least some of your shares of these recent ipos like fairway and sprouts. you want to keep playing with them, at least only do it with the house's money. stay with cramer. >> still to come, seconds anyone? grab yourself another plate because cramer's giving you another heaping portion of innovative companies including one stock up nearly 25% that
6:23 pm
could be ready to move much higher. at a dry cleaner, we replaced people with a machine. what? customers didn't like it. so why do banks do it?
6:24 pm
hello? hello?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello? ally bank. your money needs an ally. time to have new experiences with a familiar keyboard. to update our status without opening an app. to have all our messages in one place. to browse... and share... faster than ever. ♪ it's time to do everything better than before. the new blackberry q10. it's time. to experience the precision handling of the lexus performance vehicles, including the gs and all-new is. ♪ this is the pursuit of perfection.
6:25 pm
with labor day just around the corner, it's time -- it's time for another cookout. "mad money" style. but cramer only cooks with the finest natural and organic ingredients because the natural food space which has been on fire all year has pulled back recently. and i think now is a good time
6:26 pm
to talk about how to play it. we've already covered the organic grocery space. now it's time to talk about the companies that actually make all the hippy dippy natural and organic food stuff. remember, we like this theme because consumers in america, especially younger consumers are increasingly conscious about what they eat. not just in terms of whether or not it's fattening, but where it comes from and where the ingredients raised naturally, without all sorts of chemical junk added to them. so we want to compare three of the main organic natural food stocks. haines celestial, the largest player in the space with a host of brands you might recognize like celestial seasonings, garden of eden and the greek gods yogurt. then there's the smaller, annie's which is focused on selling healthy meals, snacks, dressings, condiments, mac & cheese, the right kind. last but not least, there's white wave, the organic and natural play spun off from milk
6:27 pm
titan dean foods, sells organic dairy products such as soy and they've got the almond milk. coconut milk. i mean, look at this stuff, they've got true moo. these are alternatives. i want you to think silk brand. that's what everybody likes including my kids. how do we decide among these healthy eating names. let's start with white wave here. this is a stock that until the recent positive preannouncement had been trading sideways since the spinoff. now people are realizing there are terrific growth drivers. the premium dairy business organic milk is growing in the mid single digits. however, the area where white wave really excels is plant-based beverages. this is -- we've got soy, almond milk, soy is really the one that's smoking right now. soy milk's been around for a while, but almond milk is the hot new thing. which is why it's sold double digit growth.
6:28 pm
although i think it's too sweet unless you like cereal. and the company has a strong dairy and nondairy creamer biz. they are still going up against the big guy, nestle's. then there's haines. the growth is about expanding further into baby food and new products that can be picked up in more and more supermarkets. already has a killer position in whole foods with a ton of aisle space. they're the unparalleled experts. i think there's more room for the company to expand. how about annie's? here the company with the fastest growth in the cohort, but annie's is the smallest of the three players. they're growing off a small base. coming out of new categories like this microwavable mac & cheese as well as frozen foods but don't have the breadth yet of hain celestial. more international exposure 16%
6:29 pm
of the sales quite strong r strong for them and hain has almost 35% of the business coming from europe. most of the united kingdom. struggling in the economy, but you know i believe europe's got a genuine turn going on, that could mean terrific upside for this company. it also happens to make delicious veggie dogs. let's grill some of these up, do you mind? while i'm talking, do you mind -- i'm kind of a celebrity chef, you know. that's what they say about me around the shop. there are food makers, so we need to be considering the commodity -- consider the issue of commodity costs. right now they say they aren't seeing much in the way of inflation for the main cost inputs. the company has expanded, on their hottest product.
6:30 pm
their stuff is dirt cheap to produce versus moo cow milk, hain celestial and annie's have to contend with more input inflation, but their products are more proprietary than the dairy alternative lineup. meaning more ability to pass higher costs on to the consumer. you know this is not that much of a differentiated product, right? what else? annie reported the last -- a week before last. i interviewed the ceo recently and the miss off a 15-cent basis. a little weaker than expected revenues. stock got dinged for about a point because management reaffirmed the guidance and it's got accelerated revenue growth posting in line and stronger than expected sales. not a spectacular beat because only because they already preannounced to the upside. you're going to get that kind of action. going forward, hain celestial reports this wednesday. i've got to tidy up here.
6:31 pm
oh, my, i didn't know you had meatless jumbo dogs out here. they report wednesday after the close. i think hain could do quite well. again, we've got to be careful after this huge run. plus, it's up 35% for the year. that's trounsed a lot of bears. if you want to buy this one, put on a partial position before the quarter and buy more after the results come out. that eggplant has been on there for a little while now. now, of course, that leads us to a big question. which one of these healthy food plays should you actually buy? and the answer to consider -- well, don't want to just talk about the companies, we want to talk about the stocks. the stocks often separate from the actual companies. right now, annie's, for example, it is selling for 36 times earnings with a 22.5% growth rate, meaning the stock is trading at 1.7 times the growth rate, that's much more expensive on a priced to earnings basis and growth basis than either hain or white wave, although annie's is expanding the share
6:32 pm
of the supermarket aisles in a fashion that says if the stock gets hit, you might want to be a buyer. now that dicey tape, hain sells for 25% earnings. trading a little less than 1.5 times growth. white wave sells for 23 times earnings, okay, with a 17.5% growth rate meaning it's trading at 1.3% growth. that makes it the cheapest of the bunch. yeah. white wave. a lot of guys out there. the way i see it, if the smaller less established player like annie's gets a premium even though it reported a somewhat disappointing quarter. as for hain celestial, undisputed best of breed in the space. it could easily see it trade 30 times earnings over the next few months. a 20% increase if the quarter they reported is any good. i'm going to reiterate that i think you should wait to see the quarter because, well, there's guys with big mouths out there
6:33 pm
who want this stock lower so they can cover their shorts and they tend to surface immediately after the quarterly report, even the great ones. so here's the bottom line if you want to play the natural organic food stocks, i think white wave and hain celestial are the ways to go with hain, after the close, buy some before the quarter and wait to see if you can buy more into a post earnings pullback! let's talk to robby in new jersey. robbie? >> caller: jim, how are you doing? big jersey city jim cramer boo-yah. >> i'm liking that multiple syllable boo-yah. what's going on? >> caller: best state in the world. you know, in light of the negative media views toward red bull and monster and consistent fda investigations and lawsuits, what are your thoughts onnen monster energy given the
6:34 pm
relatively low p/e -- >> well, i don't think there's viable potential. no, i do not think pepsico or coca-cola is interested in buying monster. monster is one of the greatest performing stocks of the last nine years. it's an expensive stock if the fda does something and cheap otherwise. i think it's fine. i'm not a momentum chaser. i'm more of a value guy and monster is not a value play. how about we go to jim in florida. jim? >> caller: boo-yah for boca raton, sunny florida. >> what's happening? >> caller: pardon my cold. but listen, i want to know about conagra. should i put my foot on the brakes, coast, or my foot on the accelerator? >> i like conagra, i'm trying to decide if my charitable trust should be a buyer. done a great job, yields about 3%, did that good raw buy of raw
6:35 pm
corp., i do think in the end you might be able to get that stock at $33. if you guys don't mind, i'm going to make it so that the hot dogs don't get completely scalded here. no, no, summer's not over yet, okay. it's just heating up. it's cookout time on "mad money." sitting at my table, how about yours? stay with cramer. >> tomorrow, kick off the trading day with "squawk on the street." live from post 9:00 at the nyse. >> this is a great thing for those of us who need solitary quiet lives. [ male announcer ] i've seen incredible things. otherworldly things. but there are some things i've never seen before. this ge jet engine can understand 5,000 data samples per second.
6:36 pm
which is good for business. because planes use less fuel, spend less time on the ground and more time in the air. suddenly, faraway places don't seem so...far away. ♪
6:37 pm
humans. even when we cross our "ts" and dot our "i's", we still run into problems. that's why liberty mutual insurance offers accident forgiveness with our auto policies. if you qualify, your rates won't go up due to your first accident. because making mistakes is only human, and so are we. we also offer new car replacement, so if you total your new car, we'll give you the money for a new one. call liberty mutual insurance at... and ask us all about our auto features, like guaranteed repairs, where if you get into an accident
6:38 pm
and use one of our certified repair shops, the repairs are guaranteed for life. so call... to talk with an insurance expert about everything that comes standard with our base auto policy. and if you switch, you could save up to $423. liberty mutual insurance -- responsibility. what's your policy? it is time. it's time for the "lightning round" on cramer's "mad money." say the name of the stock, i tell you whether to buy or sell. play until this sound and then the "lightning round" is over. time for the "lightning round" on cramer's "mad money." i'm going to start with susan in california. susan? >> caller: hey, cramer. i bought salesforce in june at $38. what do i do? do i keep it? do i sell? >> you're fine. you're fine.
6:39 pm
>> buy, buy, buy! >> this quarter isn't the blowout quarter. i think the company's future is in good shape. it's got the mobile, got the cloud, it's got social too. let's go to jim in michigan. jim? >> caller: hi. i wanted to find out about spartan stores sptm. >> i don't know, it feels to me about like sysco. let's go to sonny in illinois, sonny? >> caller: boo-yah, jim, love your show. >> thank you. >> caller: i've got a question for you. i got my eye on this company that had a solid second quarter results reaffirmed 2013 guidance, aes, should i pull the trigger? >> you know, i look at aes and look at aep which has got a really good yield and i think is doing very well and i want aep! let's go to anthony in michigan. anthony? >> caller: jim, let me give you a big shoutout boo-yah from shelby township, michigan. >> i've got to get there. i've also got to get to grand rapids.
6:40 pm
places you got to get to in life. what's up? my bucket list. go ahead. >> caller: jim, my question is with select comfort. i bought it at $23.65. they're a market leader, i need your help with this one. >> market leader doesn't cut it. in the end, it's like a bed company. there's nothing strong there. i'm not going to get behind this one. i don't see a lot there to like. let's go to ohio. pradeep. >> caller: how are you, jim? >> i'm fine. how are you? >> caller: i'm fine. >> google buys and then there's a disappointing quarter. i can't recommend it. let's go to pat in washington. pat? >> caller: yes. >> go ahead, pat. >> caller: hi. >> hi. >> caller: thanks, jim, for taking my call. >> my pleasure. >> caller: i live in a little town in eastern washington on the snake river bordering idaho. we are the gateway to health
6:41 pm
canyon. and my question to you is you've always said to not have too much in one stock and i find myself having 25% of my portfolio is in costco. >> that's a tough one, pat. >> caller: i love the store, it's six miles from my house and the stock i bought very, very low and it's done very, very well. >> i know it's tough to pay the taxes. by the way, i've got to tell you i think i would have to -- 20% even as my charitable trust has a big position in costco looking to buy it at $110. let's go to bob in florida. bob? >> caller: hey, nokia, nokia. >> i'm not going to disagree with that. i've been recommending it like three and change, everyone thinks i'm a total bozo, but i think the stock can inch up to five without a problem and then we're going to ca-ching ca-ching that because it ain't that good
6:42 pm
of a company. and that, ladies and gentlemen, is the conclusion of the "lightning round." >> the "lightning round" is sponsored by td ameritrade. [ m- you're having triplets. [ babies crying ] surprise -- your house was built on an ancient burial ground. [ ghosts moaning ] surprise -- your car needs a new transmission. [ coyote howls ] how about no more surprises? now you can get all the online trading tools you need without any surprise fees. ♪ it's not rocket science. it's just common sense. from td ameritrade.
6:43 pm
it's just common sense. every day we're working to and to keep our commitments. and we've made a big commitment to america. bp supports nearly 250,000 jobs here. through all of our energy operations, we invest more in the u.s. than any other place in the world. in fact, we've invested over $55 billion here in the last five years - making bp america's largest energy investor. our commitment has never been stronger.
6:44 pm
6:45 pm
i want to tell you about a stock i believe is not getting enough respect. a rodney dangerfield name if you will, letter "q" for your home gamers. conducting outsourcing clinical trials for the drug industry. they're the largest player in the space and just as important, they have terrific exposure to phase two and three trials. the later stage trials where the pharmaceutical companies are spending the lion share of the budgets to quickly bring as many new drugs to market as possible. quinntiles became public in may. when you consider the strength of so many other recent ipos, doesn't seem like much to write home about. it feels very much under the radar. quintile reported the first public quarter in august. new net business up 13% for the
6:46 pm
quarter, meaning the company literally has more business coming its way than it can handle. it's a $5.7 billion company with a $900 billion backlog and gave you upside guidance for the full 2013 fiscal year. the stock popped $1.50 on the news. i think it could have a potential to go a lot higher. last week announced it's buying novella clinical that will give them more exposure for oncology drugs and medical devices. let's take a closer look with the ceo. welcome back to "mad money." good to see you, sir. >> hi, jim. thank you for having me. >> thank you so much. in all your public filings, there is a sense that you do best when a drug company gives you -- when you get a soup to nuts contract. what is a soup to nuts contract in the reorganization mode? >> we call them full-service contracts. and i think you know we try to
6:47 pm
work to commercialization. a full-service contract is really one where not only do we help you design the trial, we help you execute the trial. and at times, we even help with the post marketing surveillance, the observational studies afterwards. what we like is that full scope of work, then we can take advantage of our 1,600 medical doctors and ph.d.s. >> in other words, let's say you get approval, you're not done. you can still do -- i know you said that in your reading -- in the writings that a lot of these big drug companies don't like the boom bust of sales -- you're the solution to that. >> yes, well, a couple things we do after approval. increasingly, what you want to see is you want to see a faster approval path. that often means required observational or post marketing type studies taking place and we're a real leader in that. we bought a company called outcome science and it's an organization that literally wrote the book on those practices. then the other piece is really our commercialization piece. and we are the largest provider
6:48 pm
of commercial services. again, we mix the feet on the street, nurse educators, mix them with expertise around outcome and consulting and that combination seems to be very effective for our customers. >> now, we know there's been an explosion of biotech companies. when they raised money and don't want to partner with the bigger company, you seem to be the preferred vendor for them. >> yes, we did about 27% of our new business with smaller biotech. now the novella acquisition you referenced is an effort to even provide a little bit more personalized service that sometimes it's perceived big quintiles doesn't provide for smaller tech. for oncology, we're going to work with them to provide a little bit higher touch service model. >> one of the things i see, you're up against -- really great companies. we've been recommending that.
6:49 pm
we've liked these hard companies that take share from. i know you mentioned that you sometimes have to compete on price. >> it's true. i have to say we're really proud of our 1.36 book to bill ratio this year and our product development segment. that's the segment that competes directly with them. we're confident that overall the larger cros are taking share from the smaller cros. >> okay. >> and we believe we certainly compete well against those companies. but it's a great place to be right now, jim. >> all right. at the end of last year, you did have a cancellation. i know there's a couple of stern a.g.s negative about you guys. was that one off, do you think? >> well, it's an industry that has cancellations as part of the business model. our cancellations are not running ahead of long-term trend. so we're very comfortable with where we are on that. and, you know, again, as one of the leaders in the industry with 13% net new business in the quarter, 16% net new business overall for the half year, we
6:50 pm
feel pretty good about where we are. >> okay. one last question, when you go in to a biotech company, are you the guy who says no go, no go? because a lot of our biotech companies say, listen, we're not at the no go no phase yet. >> well, we have phase one, clinical services. and we'll do sometimes those are done in our own facilities. sometimes those are done in other places. so we will help them design the right trial for whatever their particular drug indication is, et cetera, and then try to have effective regulatory path way as possible. >> but you must do that in conjunction with the fda in some sort of way. you can't just wing it. >> our people are very experienced working with the fda. not only just working on the regulatory process, but for instance, our statustici statisticians work with the fda. how do you effectively get a
6:51 pm
statistical signal from it. >> not a lot of companies can do what you do, which makes it proprieta proprietary. i hope you understand now why i like this company. little off the beaten path but it shouldn't be. stay with cramer.
6:52 pm
[ chainsaw buzzing ] humans. sometimes, life trips us up. sometimes, we trip ourselves up. and although the mistakes may seem to just keep coming at you, so do the solutions.
6:53 pm
like multi-policy discounts from liberty mutual insurance. save up to 10% just for combining your auto and home insurance. call liberty mutual insurance at... to speak with an insurance expert and ask about all the personalized savings available for when you get married, move into a new house, or add a car to your policy. personalized coverage and savings -- all the things humans need to make our world a little less imperfect. call... and ask about all the ways you could save. liberty mutual insurance -- responsibility. what's your policy? let the speculation begin. we learned that stat oil selling $2.65 billion to build a war
6:54 pm
chest of $7 billion smackers to fund and find more oil. so what will stat oil do with the money? we know they're happy with the purchase two years ago for $4.4 billion to get terrific bakken shale properties in north dakota. remember, we rocked the bakken. and statoil's had a good experience with chesapeake for 32.5% interest in chk's 1.8 million acres which paid $3.8 billion five years ago. when the representative appeared on "mad money" in june of last year, he said he likes buying in the united states very much because the country's very accommodative to those who want to drill for oil versus many other places around the world. i believe given the company's positive disposition towards the united states expressed here on "mad money," presume it might up its drilling budget for properties it already owns, can't make much money on that. or it might put more money to work buying oil companies in this country.
6:55 pm
we know the chesapeake where carl icahn stake close to 10%, could they sell rest of the marcellus position? given how capital oil and gas or c.o.g. keeps finding better and better nat gas properties, i don't think chesapeake's a seller. we know there's plenty more oil in north dakota than we first thought and even since the time of statoil's buy. so perhaps the company reaches out for whiting petroleum, a high-quality producer with assets, well, not that far from brigham. and i presume that statoil can augment to a slightly higher level without stressing the balance sheet. whiting down 10% from the highest due to production growth. kodiak oil and gas as it's on the $2.5 billion company. it had been for sale earlier this summer but nothing materialized. the worry here is that can it's
6:56 pm
had inconsistent growth. why would statoil want to take a chance considering they could have swallowed kodiak with the money it had on hand. how about if statoil wanted to make a move on the most attractive company in stock, that would be concho resources. maybe the next big shale play after the eagleford in texas and the bakken in north dakota. current capitalization about $10 billion, might be beyond reach, i don't know. finally, there's sand ridge energy, a perennials for sale candidate here, guys. with a caretaker management that sells for $5 a share that leon cooperman told us he liked at the delivering alpha conference. it can be swallowed easily, though, by statoil and it's got some quality of assets. possibly if an imminent deal can't with ruled out, statoil's
6:57 pm
got the money. i say bakken boo-yah. stick with cramer. [ male announcer ] come to the golden opportunity sales event and experience the connectivity of the available lexus enform, including the es and rx. ♪ this is the pursuit of perfection. a talking car. but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel. delivering whatever the world needs, when it needs it. ♪ after all, what's the point of talking
6:58 pm
if you don't have something important to say? ♪ if you don't have something important to say? in a we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through,
6:59 pm
we say: let's get to work. because the future belongs to those who challenge the present. and this is my home team. this is my large lecture hall. this is my professor. and also my coach. this is my booster club. this is the guy who's graduating ready for a great career in technology. [ male announcer ] in 2012, 90% of devry university grads actively seeking employment had careers in their field in 6 months. join the 90%. learn how at
7:00 pm
did retail get too hard hit? tonight, urban outfitters reports a pretty good number. but then the stock just zooms. why? the shorts may be scrambling. there's always a bull market somewhere, i promise to try to find it for you here on "mad money." i'm jim cramer, and i will see you tomorrow! what makes all the economists out there think there's going to be a second half growth rebound? you know what? i think bad numbers and bad policies are sinking that scenario. former obama adviser austan goolsbee is going to defend his man, but wisconsin governor scott walker will be here and take goolsbee to the


info Stream Only

Uploaded by TV Archive on